9911796707
TMI Blog2005 (8) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, namely, the Securities and Exchange Board of India Act, 1992. Through section 11 of this Act, a duty has been cast on the Board to protect the interests of the investors in securities and to promote the development and to regulate the securities market by such measures as it think fit. The Board may issue the instructions to regulate the business in a stock exchange and the Securities Market. The Board has also armed with the same powers as are vested in the civil court under the Civil Procedure Code, 1908 while trying a suit in respect of certain matters. The Board is also conferred with the powers to issue directions and conduct investigations in certain matters and also to grant registration to a stock broker, sub-broker and sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Hemant Jadia, Adv. Order Sunil Kumar Yadav (Judicial Member). 1. These appeals of the Revenue are directed against the order of the Commissioner of Income-tax (Appeals) on a solitary ground that the Commissioner of Income-tax (Appeals) has erred in holding that turnover charges of Rs. 10,95,843 in the assessment year 1997-98 and Rs. 26,25,569 in the assessment year 1998-99, payable to SEBI is neither tax nor duty payable to any State or Central Government and not covered under the provisions of section 43B of the Income-tax Act. 2. The facts in this regard borne out from the orders of the lower authorities are that the assessee who is a member of the National Stock Exchange has debited a sum of Rs. 26,25,569 in the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h such charges are not paid to the SEBI and the assessee can claim deduction in respect thereof. He further contended that the SEBI turnover charges is distinguished from the words tax, duties, cess or fees as defined by section 43B of the Act. He placed reliance upon the judgment of the Calcutta High Court in the case of CIT v. Varas International P. Ltd. [1997] 225 ITR 831. 3. The contentions of the assessee were not accepted by the Assessing Officer. He observed that any amount collected by way of bills raised by the assessee has to be considered as part of a receipt and the Revenue has to be recognised with the raising of the bills in the case of mercantile system of accounting. Admittedly, the assessee maintained its accounts on mercan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liance upon the order of the Assessing Officer. 5. The learned Departmental Representative invited our attention to the Securities and Exchange Board of India Act, 1992 with the submission that this Act has been enacted by Parliament and under its section 3, the Central Government by notification constitutes a Board by the name of the Securities and Exchange Board of India. Management of the Board is also to be constituted by the Government as per section 4 of the Act. The term of office and conditions of services of the Chairman and member of the Board were also defined under this Act. The powers and function of the Board are enshrined in section 11 of the Act under Chapter IV according to which, the Board is empowered to levy fees of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act? Undisputedly, the SEBI turnover charges is payable on the basis of the turnover undertaken by the assessee. It is not a fixed amount which has to be paid by the assessee to acquire a licence or the permission to do business of share broker. It depends upon the turnover of the assessee. Admittedly, the SEBI is a creature of the Act, namely, the Securities and Exchange Board of India Act, 1992. Through section 11 of this Act, a duty has been cast on the Board to protect the interests of the investors in securities and to promote the development and to regulate the securities market by such measures as it think fit. The Board may issue the instructions to regulate the business in a stock exchange and the Securities Market. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
